Indonesia Manufacturing Sector Contracts In December

Indonesia's manufacturing activity deteriorated for the first time in five months in December, survey figures from IHS Markit showed Tuesday.

The seasonally adjusted Nikkei Purchasing Managers' Index dropped to 49.3 in December from 50.4 in November.

Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

The downturn was partially driven by renewed declines in output and new orders.

Consequently, firms cut their staffing levels at a modest pace and reduced their inventory holdings.

On the price front, input price inflation accelerated to a 6-month high, led by higher imported raw material costs stemming from the weakness of the Indonesian rupiah. As a result, firms raised their selling prices.

Finally, business sentiment towards future output expectations was the strongest since June.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.

comments powered by Disqus